Bitcoin has moved above a key long-term technical level that CryptoQuant says has historically marked major shifts in the cryptocurrency’s market cycle. BTC closed above its 365-day moving average, which stood near $80,500, for the first time since March 2023.
At the time, the asset was trading around $86,000 when it closed above the average. The analytics firm said the move confirms the start of a new bull market. The firm cited similar breaks above the average that preceded major advances in 2019 and 2023.
Bitcoin’s Market Signals Turn Positive
CryptoQuant also pointed to earlier periods when Bitcoin fell below the same average, including the end of the 2021 market peak and the downturn in November 2025. Rather than treating the indicator as a short-term trading tool, analysts described the 365-day average as a marker of broader market cycles.
Bitcoin had remained below the level for an extended period before the latest move, making the reclaim a notable change in its longer-term structure. The move also follows signals from CryptoQuant’s internal market indicators, which had already turned more positive several weeks earlier.
Those indicators, including the firm’s Bull Score Index and Bull-Bear Market Cycle Indicator, both moved toward an early bull-market phase by mid-August. The latest price action has now aligned with those earlier on-chain signals.
BTC Clears Key Supply Zone
Bitcoin has also cleared a major supply barrier between $76,000 and $81,000, held by long-term investors and wallets inactive for over seven years. According to the analytics firm, many of those coins were sold earlier this year, creating significant overhead supply that BTC has now cleared.
The next major supply area sits between $88,000 and $90,000, where another large group of coins is concentrated. That range also lines up with the upper end of traders’ realized price, making it an important level to monitor as BTC moves higher.
Below the current price, support remains around the 200-day moving average near $70,600 and the recently reclaimed 365-day average. CryptoQuant warned that pullbacks can still occur even after a broader market-cycle signal turns positive.
Against this backdrop, the latest move follows months of consolidation after Bitcoin’s decline last year. Market participants will watch whether BTC holds above the 365-day average and approaches the $88,000 to $90,000 supply zone.
Source: CryptoPotato
